Threatening gas shortages: work on a protective shield for municipal utilities

Created: 07/06/2022Updated: 07/06/2022 12:35 p.m

Ina Scharrenbach (CDU), Minister for Homeland, Municipal Affairs, Construction and Digital, smiles.

© Marius Becker/dpa

The gas crisis is getting worse.

The federal government wants to support energy companies and protect consumers from price explosions.

But municipal utilities are also at risk of getting into trouble.

NRW wants to be prepared for emergencies.

Düsseldorf - In view of the impending gas shortage and rising energy prices, North Rhine-Westphalia is preparing a protective shield for NRW municipal utilities.

The rescue package should be closely based on the principle of the country's billion-euro corona protection package for public infrastructure, said NRW Municipal Minister Ina Scharrenbach (CDU) to journalists on Wednesday.

At Stadtwerke there is "a case where we are already active," Scharrenbach had previously told the "Rheinische Post" (Wednesday).

When asked, the minister did not want to say which municipal utility it was.

The country's corona protective shield was largely not used because the fears did not materialize, said Scharrenbach.

"But the best thing is always to prepare for a worst-case scenario." She cannot yet say anything about the amount of the planned rescue package for public utilities.

At the beginning of the Corona crisis in 2020, the state of North Rhine-Westphalia put up a 25 billion euro rescue package for the economy.

By the end of 2021, around 13 billion euros in aid for people, industries and municipalities had been accessed.

The municipal utilities are "an integral part of the energy supply of the state of North Rhine-Westphalia", according to Scharrenbach.

But municipal utilities that do not trade on the stock exchange are not protected by the measures taken by the federal government.

That is why the state wants to avert possible imbalances in these municipal utilities in the interests of security of supply.

Various tests are currently running.

The municipalities are already trying to save energy wherever possible, said Scharrenbach in the newspaper interview.

"Of course, many are concerned about autumn and winter when it comes to heating indoor pools, sports halls, schools or other facilities." She expects less optimistic estimates for tax revenue in the November estimate.

"Then it may happen that the municipalities will temporarily have to take on more debt again."

In view of the impending upheavals in the gas market, the municipal utility association VKU had also called for a protective shield not only for ailing energy companies, but also for municipal utilities.

Federal Economics Minister Robert Habeck (Greens) had warned of a possible “price explosion” at some municipal utilities at an event organized by “Zeit” on Saturday evening.

This could happen if Russia no longer supplies gas via the Nord Stream 1 gas pipeline and the federal government allows large suppliers like Uniper to pass on the prices to their customers, such as municipal utilities.

Russia had already severely curtailed supplies through the Nord Stream 1 pipeline.

This caused the gas importer Uniper to experience turbulence and called for state aid.

The annual maintenance work on Nord Stream 1 will start in a few days. Normally, no gas will flow for ten days.

The fear now is that this time Russia will not turn on the gas tap again.

Uniper plays a central role in Germany's energy supply and supplies many municipal utilities.

dpa